Parker Hannifin Corporation

Quarterly Earnings Release

3rd Quarter FY 2009

April 16, 2009

Exhibit 99.2

Slide 2

Forward-Looking Statements

Forward-Looking Statements:

Forward-looking statements contained in this and other written and oral reports are made based

on

known

events

and

circumstances

at

the

time

of

release,

and

as

such,

are

subject

in

the

future to unforeseen uncertainties and risks. All statements regarding future performance,

earnings projections, events or developments are forward-looking statements. It is possible that

the future performance and earnings projections of the company and individual segments may

differ materially from current expectations, depending on economic conditions within its mobile,

industrial and aerospace markets, and the company's ability to maintain and achieve

anticipated benefits associated with announced realignment activities, strategic initiatives to

improve

operating

margins,

actions

taken

to

combat

the

effects

of

the

current

recession,

and

growth, innovation and global diversification initiatives. A change in economic conditions in

individual markets may have a particularly volatile effect on segment results. Among the other

factors which may affect future performance are: changes in business relationships with and

purchases by or from major customers or suppliers, including delays or cancellations in

shipments or significant changes in financial condition; uncertainties surrounding timing,

successful completion or integration of acquisitions; threats associated with and efforts to

combat terrorism; uncertainties surrounding the ultimate resolution of outstanding legal

proceedings, including the outcome of any appeals; competitive market conditions and resulting

effects on sales and pricing; increases in raw material costs that cannot be recovered in product

pricing; the company’s ability to manage costs related to employee retirement and health care

benefits and insurance; and global economic factors, including manufacturing activity, air travel

trends, currency exchange rates, difficulties entering new markets and general economic

conditions such as inflation, deflation, interest rates and credit availability. The company makes

these statements as of the date of this disclosure, and undertakes no obligation to update them.

Slide 3

Non-GAAP Financial Measure

This presentation reconciles sales amounts reported in accordance

with U.S. GAAP to sales amounts adjusted to remove the effects of

acquisitions made within the prior four quarters as well as the effects

of

currency

exchange

rates

on

sales.

The

effects

of

acquisitions

and

currency exchange rates are removed to allow investors and the

company to meaningfully evaluate changes in sales on a comparable

basis from period to period.

Slide 4

Discussion Agenda

CEO 3  Quarter Highlights

Key Performance Measures & Outlook

Questions & Answers

CEO Closing Comments

rd

Slide 5

Third Quarter & YTD Highlights

Q3 FY09:

Cash Flow/Sales Increased Sequentially to 11.6%

Capital Expenditures/Sales Decreased to 2.2%

YTD FY09:

Cash Flow YTD of $716

Million (8.8% of Sales) 

Inventory/Sales Reduced to 12.4% (In Line with

FY08)

Slide 6

Financial Highlights

Diluted Earnings per Share

3   Quarter

$1.49

$.33

$2.81

$4.05

$.00

$.50

$1.00

$1.50

$2.00

$2.50

$3.00

$3.50

$4.00

$4.50

Q3 FY09

Q3 FY08

FY09 YTD

FY08 YTD

rd

Slide 7

Influences on 3

rd

Quarter Earnings

Diluted Earnings Per Share Decreased as a Result of:

Lower Sales (26%) Due To A Recession Driven Decline In Most

Markets

Realignment Expenses of $25M

Inventory Reductions of $184M

Higher Interest Expense

Higher Other Expense Related to Parker ITR Legal Proceedings:

$36M

Offset by:

Lower Corporate, General and Administrative Expenses

Lower Tax Expense Due to Decreased Income and Lower Effective

Tax Rate

Gain From Insurance Settlement of $12M

Fewer Shares Outstanding

Slide 8

rd

Financial Highlights

Sales –

3

Quarter and YTD as of March 31

Dollars in millions

FY2009

%

Change

FY2008

FY2009

%

Change

FY2008

Sales

As reported

2,345

$

(26.3)%

3,183

$  

8,098

$  

(8.0)%

8,799

$  

Acquisitions

146

      

4.6 %

450

        

5.1 %

Currency

(218)

    

(6.9)%

(338)

       

(3.9)%

Adjusted Sales

2,417

$

(24.0)%

7,986

$  

(9.2)%

3rd Quarter

Year To Date

Slide 9

Influences on Sales

Positives:

Aerospace

Acquisitions

Negatives:

Global recession

Currency

Slide 10

Segment Reporting

Industrial North America

Dollars in millions

Sales

As reported

Acquisitions

Currency

Adjusted Sales

Operating Margin

As reported

% of Sales

FY2009

%

Change

FY2008

FY2009

%

Change

FY2008

857

$  

(21.2)%

1,087

$ 

2,957

$ 

(4.1)%

3,084

$ 

79

7.2 %

241

7.8 %

(20)

(1.8)%

(38)

(1.2)%

798

$  

(26.6)%

2,754

$ 

(10.7)%

73

$     

148

$    

341

$     

445

$     

8.5 %

13.6 %

11.5 %

14.4 %

Year To Date

3rd Quarter

Slide 11

Segment Reporting

Industrial International

Dollars in millions

FY2009

%

Change

FY2008

FY2009

%

Change

FY2008

Sales

As reported

837

$   

(37.8)%

1,346

$  

3,103

$  

(14.4)%

3,624

$  

Acquisitions

67

        

5.0 %

191

        

5.2 %

Currency

(176)

    

(13.1)%

(262)

       

(7.2)%

Adjusted Sales

946

$   

(29.7)%

3,174

$  

(12.4)%

Operating Margin

As reported

38

$      

217

$     

356

$      

576

$      

  % of Sales

4.6 %

16.1 %

11.5 %

15.9 %

3rd Quarter

Year To Date

Slide 12

Segment Reporting

Aerospace

Dollars in millions

FY2009

%

Change

FY2008

FY2009

%

Change

FY2008

Sales

As reported

480

$  

2.1 %

470

$    

1,432

$ 

7.9 %

1,328

$ 

Acquisitions

18

1.4 %

Currency

(8)

(1.7)%

(12)

(0.9)%

Adjusted Sales

488

$  

3.8 %

1,426

$ 

7.4 %

Operating Margin

As reported

66

$     

68

$       

203

$     

178

$     

% of Sales

13.7 %

14.5 %

14.2 %

13.4 %

3rd Quarter

Year To Date

Slide 13

Segment Reporting

Climate & Industrial Controls

Dollars in millions

FY2009

%

Change

FY2008

FY2009

%

Change

FY2008

Sales

As reported

171

$   

(38.9)%

280

$     

606

$      

(20.5)%

762

$      

Acquisitions

Currency

(15)

       

(5.3)%

(25)

         

(3.3)%

Adjusted Sales

186

$   

(33.6)%

631

$      

(17.2)%

Operating Margin

As reported

(7)

$       

18

$        

(5)

$         

39

$        

  % of Sales

(4.3)%

6.5 %

(0.8)%

5.1 %

3rd Quarter

Year To Date

Slide 14

Parker Order Rates

Excludes Acquisitions & Currency

3-month year-over-year comparisons of total dollars, except Aerospace

Aerospace is calculated using a 12-month moving average

FY09

FY08

MAR

DEC

MAR

DEC

Total Parker

34 %

-

20 %

-

9 %

+   

10 %

+ 

Industrial North America

35 %

-

18 %

-

2 %

+   

4 %

+   

Industrial International

41 %

-

28 %

-

11 %

+ 

16 %

+ 

Aerospace

12 %

-

2 %

+  

28 %

+ 

19 %

+ 

Climate & Industrial Controls

36 %

-

28 %

-

1 %

-

6 %

-

Three Month Rolling at Period End

Slide 15

Balance Sheet Summary

Cash

Working capital

-

Inventory

-

Accounts receivable

-

Accounts payable

Slide 16

Strong Cash Flow

Cash from Operating Activities

3

rd

Quarter Year to Date

$864

$716

$0

$60

$120

$180

$240

$300

$360

$420

$480

$540

$600

$660

$720

$780

$840

$900

FY09

FY08

11.6% Q3

$272M

Slide 17

Financial Leverage

Debt to Debt Equity

36.8%

16.0%

18.0%

20.0%

22.0%

24.0%

26.0%

28.0%

30.0%

32.0%

34.0%

36.0%

38.0%

40.0%

42.0%

FY00

FY01

FY02

FY03

FY04

FY05

FY06

FY07

FY08

FY09 YTD

36.8% 

Debt to Debt Equity

(35.2% net Debt)

Slide 18

FY 2009  Earnings Outlook Assumptions

Segment Sales & Operating Margins

FY 2009 Sales change versus FY 2008

Industrial North America

(13.4)%

--

(13.2)%

Industrial International

(22.7)%

--

(22.5)%

Aerospace

2.3 %

--

2.5 %

Climate & Industrial Controls

(26.8)%

--

(26.6)%

FY 2009 Operating margin percentages

Industrial North America

10.7 %

--

11.0 %

Industrial International

9.5 %

--

9.9 %

Aerospace

13.4 %

--

13.7 %

Climate & Industrial Controls

(.7)%

--

(.1)%

Slide 19

FY 2009 Earnings Outlook Assumptions

below Operating Margin

Corporate Admin

(5%)  to  (20%)  vs. FY 2008

Interest Expense

+ 20%  to + 6%   vs. FY 2008

Other Expense (Inc.) 

(40%)  to  + 5%  vs. FY 2008

Tax Rate

27 %

Slide 20

Earnings Outlook –

FY09

Low

High

Diluted earnings per share

$2.95

$3.15

Slide 21

Questions & Answers...

Appendix

Income Statements

3   Quarter FY2009

3   Quarter YTD FY2009

rd

rd

Slide 23

Income Statement –

3

Quarter

Dollars in millions

% of Sales

% of Sales

Net Sales

2,344.7

$ 

100.0 %

3,182.5

$ 

100.0 %

Cost of sales

1,908.6

81.4 %

2,447.2

76.9 %

Gross profit

436.1

18.6 %

735.3

23.1 %

S, G & A

318.0

13.6 %

347.0

10.9 %

Interest expense

28.4

1.2 %

25.5

.8 %

Other expense (income), net

27.2

1.1 %

5.0

.2 %

Income before taxes

62.5

2.7 %

357.8

11.2 %

Income taxes

9.1

.4 %

102.4

3.2 %

Net income

53.4

$       

2.3 %

255.4

$    

8.0 %

FY 2009

FY 2008

rd

Slide 24

rd

Income Statement –

3   Quarter YTD

Dollars in millions

% of Sales

% of Sales

Net Sales

8,098.1

$ 

100.0 %

8,798.9

$ 

100.0 %

Cost of sales

6,367.3

78.6 %

6,763.7

76.9 %

Gross profit

1,730.8

21.4 %

2,035.2

23.1 %

S, G & A

987.9

12.2 %

990.9

11.3 %

Interest expense

86.8

1.0 %

74.0

.8 %

Other expense (income), net

39.0

.5 %

(1.4)

(.0)%

Income before taxes

617.1

7.7 %

971.7

11.0 %

Income taxes

158.1

2.0 %

274.8

3.1 %

Net income

459.0

$     

5.7 %

696.9

$    

7.9 %

FY 2009

FY 2008